*EPF220 05/13/2003
U.S. Trade Deficit Surges in March as Oil Imports Hit Record
(No help yet from declining exchange value of U.S. dollar) (990)

By Bruce Odessey
Washington File Staff Writer

Washington -- The U.S. trade deficit jumped in March to its second highest level on record as the value of crude oil imports reached a record, the U.S. Department of Commerce reports.

In a May 13 press release, the department said the March deficit amounted to a seasonally adjusted $43,456 million, up from a revised $40,372 million in February. March's deficit comprised a goods deficit of $47,109 million and a services surplus of $3,653 million.

The March deficit went up 7.6 percent from February; deficits decreased in January and February from the record $44,877 million in December.

Even though the U.S. economy was expanding weakly in the first quarter, the economies of Europe and Japan were performing even worse, probably accounting for most of the persistent rise of the U.S. trade deficit.

Although the slide in the foreign exchange value of the U.S. dollar should theoretically improve the U.S. trade balance eventually, it could aggravate the deficit at first as U.S. business orders placed months earlier from foreign suppliers cost more.

U.S. imports of crude oil in March hit a record value of $9,101.2 million even though the price per barrel fell to $30.27 from $30.46 in February -- the volume of imports surged to 300.7 million barrels from 247.1 million barrels in February.

Aside from oil, big increases in imports were reported in March for autos and auto parts and pharmaceuticals. U.S. exports increased for the third month in a row with especially large gains in semiconductors and pharmaceuticals.

Large bilateral deficits were reported in March with China, $7,670 million; Japan, $5,831 million; Canada, $5,205 million, the highest level since January 2001; Mexico, a record $3,924 million; Germany, $3,375 million; Italy, $1,428 million, and Taiwan, $1,152 million.

Following are some key figures:

U.S. GOODS AND SERVICES EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade
balance Exports Imports

Jan.-Dec. 2001 -358,290 998,022 1,356,312
Jan.-Dec. 2002 -435,676 971,665 1,407,341

Jan.-March 2002 -95,627 232,959 328,586
Jan.-March 2003 -125,061 247,205 372,266

March 2002 -32,595 78,294 110,889
March 2003 -43,456 82,839 126,295

U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade
balance Exports Imports

Jan.-Dec. 2001 -427,165 718,762 1,145,927
Jan.-Dec. 2002 -484,487 682,387 1,166,874

Jan.-March 2002 -106,602 164,371 270,973
Jan.-March 2003 -136,375 172,199 308,574

March 2002 -36,663 54,886 91,549
March 2003 -47,109 58,078 105,187

U.S. SERVICES EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade
balance Exports Imports

Jan.-Dec. 2001 68,875 279,260 210,385
Jan.-Dec. 2002 48,811 289,278 240,467

Jan.-March 2002 10,975 68,588 57,613
Jan.-March 2003 11,314 75,006 63,692

March 2002 4,068 23,408 19,340
March 2003 3,653 24,761 21,108

U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE, BY COUNTRY
Millions of dollars, on a Census basis, not seasonally adjusted

Bilateral March March
balance exports imports

Total -42,852 63,092 105,944

North America -9,129 22,868 31,997
Canada -5,205 15,057 20,262
Mexico -3,924 7,810 11,735

Western Europe -7,787 15,168 22,955
Euro Area -6,013 10,039 16,052
European Union -7,269 13,821 21,090
Austria -212 149 360
Belgium 424 1,286 861
Finland -215 143 358
France -608 1,716 2,324
Germany -3,375 2,799 6,173
Italy -1,428 845 2,273
Netherlands 924 1,868 944
Spain -80 481 561
Sweden -630 360 990
United Kingdom -419 3,283 3,702
Other EU -1,651 892 2,543

European Free Trade
Association -545 862 1,407
Norway -314 118 432
Switzerland -235 703 937
Other EFTA 4 42 38
Other Western Eur. 27 485 458

Eastern Europe, Former
Soviet Reps. -1,283 600 1,883
Hungary -302 117 419
Poland -44 68 112
Former Sov. Reps. -806 296 1,102
Russia -645 191 836
Other FSR -161 105 266
Other Eastern Europe -131 119 251

Pacific Rim -15,857 16,167 32,024
Australia 522 992 470
China -7,670 2,425 10,094
Japan -5,831 4,463 10,293
Newly Industrialized
Countries -920 6,245 7,164
Hong Kong 623 1,184 561
South Korea -733 2,164 2,897
Singapore 342 1,560 1,217
Taiwan -1,152 1,337 2,489
Other Pacific Rim -1,959 2,043 4,002

South/Cent. America -2,285 4,503 6,788
Argentina -27 198 225
Brazil -590 934 1,525
Colombia -232 308 541
Other S/C America -1,436 3,062 4,498

OPEC -4,988 1,557 6,545
Indonesia -578 233 811
Nigeria -1,034 69 1,103
Saudi Arabia -1,302 406 1,708
Venezuela -1,273 181 1,453
Other OPEC -802 667 1,469

Other countries -3,372 2,644 6,016
Egypt 50 165 114
South Africa -121 220 341
Other -3,302 2,260 5,562

NOTE: Data on a Census basis reflect movement of goods into and out of the United States through U.S. Customs Service stations. Balance-of-payments basis data adjust Census data to include products that bypass Customs, such as exports of military aircraft and imports of electricity from Canada.

(The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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